Earlier this month, Chinese state-owned company ChemChina reached an acquisition deal of $43 billion with Swiss company Syngenta. After clearing regulation requirements in China, ChemChina is now seeking out loans of more than $35 billion from bankers to fund the purchase.
Syngenta
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Fairchild board rejected acquisition proposal from Chinese firms over fears of US regulatory approval. After a thorough review process and consultation with its financial and legal guides, the board of Fairchild decided to forbid the takeover offer.
Both ChemChina and Syngenta have agreed on the amount of $34 billion for ChemChina to acquire the Swiss company. The acquisition, if completed, would be the biggest foreign purchase ever made by a Chinese company. However, the trend shows that Chinese company are showing interest in investing overseas, especially in the Western countries.
Previously, the company has also purchased German's KraussMaffei Group. Also, Chinese companies investment overseas is growing.
Agrochemicals firm Syngenta on Friday rejected a $45 billion takeover offer from Monsanto, saying the offer undervalued the Swiss firm and did not fully take into account regulatory risks.
Monsanto (MON.N), the world's largest seed company has again approached Switzerland's Syngenta (SYNN.VX) in recent weeks with an offer to buy the company, Bloomberg reported citing people familiar with the matter.
Low borrowing costs, currency shifts and the hunt for both cost savings and growth opportunities will drive a steady flow of merger and acquisition deals this year despite geopolitical tensions, according to business leaders meeting this week.
China’s barriers to imports of some U.S. genetically modified crops are disrupting seed companies' plans for new product launches and keeping at least one variety out of the U.S. market altogether.
European stocks rebounded with Volvo and EasyJet as top gainers.